Volatility Premium Plus ETF - Investor USD (ZVOL)

Overview

The fund is characterized as an actively-managed exchange-traded fund (ETF) that primarily focuses on achieving its investment objective through leveraging futures contracts. These contracts are based on the Chicago Board Options Exchange, Incorporated Volatility Index (VIX), a popular measure of the stock market's expectation of volatility based on S&P 500 index options. Unlike many other funds, this particular ETF aims at measuring the performance of the inverse of the underlying index, offering a unique investment approach. The fund opts for a non-diversified status, concentrating its investments more narrowly than diversified counterparts in an effort to meet its specific objectives.

Products and Services

• Futures Contracts based on the VIX:

  The core of the fund's investment strategy lies in futures contracts that are linked to the VIX. These financial instruments are designed to bet on future volatility expectations in the market. By focusing on these futures, the fund aims to capitalize on movements in market volatility, offering investors a potentially profitable avenue during turbulent market periods.

• Investment in Financial Instruments:

  Apart from VIX-based futures, the fund indulges in various other financial instruments. These may include but are not limited to, swap contracts, options, and forwards, providing a broader exposure to the inverse performance of the underlying index. This variety enables a multi-faceted approach to achieving the fund's investment objectives.

• Non-Diversified Fund Structure:

  The choice of a non-diversified fund structure allows the ETF to invest a larger portion of its assets into specific investments, enhancing the potential for significant gains from those investments. However, this also implies a higher risk because the fund's performance can be more closely tied to the performance of fewer investments.